JSE-listed industrial group Reunert’s revenue increased by 11% year-on-year to R5.1-billion for the six months ended March 31, while operating profit increased by 4% to R465-million.
The group’s profit after tax increased by 7% to R331-million, while headline earnings a share climbed 1% to R1.95 apiece and earnings a share by 1% to R1.96 apiece.
As such, Reunert’s interim dividend a share grew by 7% to 75c apiece.
Reunert has three operating segments – electrical engineering, information and communications technology (ICT) and applied electronics.
Group CEO Alan Dickson says the group’s performance in the first half positions it to benefit from its strong export order books, and improving electrical engineering and ICT businesses, to deliver an improved full-year performance.
The electrical engineering segment delivered a 7% year-on-year reduction in operating profit to R151-million, while the ICT businesses held steady growth with operating profit rising by 4% to R305-million.
The applied electronics segment’s profitability recovered strongly, with profitability rising by 77% to R55-million in the period under review.
Group CFO Nick Thomson adds that Reunert’s management team's ability to identify and secure opportunities, as well as to manage their business units’ cash flows and operating costs during challenging times, disrupted supply chains and high commodity prices, resulted in a strong balance sheet.
“This financial strength allows us to go forward with confidence, to execute our strategy, to grow our businesses organically and to drive further growth through acquisitions in the ICT segment and through opportunities to invest in renewable energy,” he says.